"To no small degree, our emotions are barometers of the degree to which we are meeting or falling short of our expectations."*
"A Good Day Is a Winning Day."*
I say: “A No Trade Day Is also a Good Day.” Not only profit days are good. There have been lots of great days in my trading career that were not green days. I’m happy and proud of myself at the end of the day if I go back and see that I followed my rules and plan. I’m very proud of myself when I see that I executed my trades based on my rules for the setup. The most important days are those when I follow my rules about risk management. And as weird as it may seem, equally important are the ones when I manage my risk poorly. Even though I always trade with a stop placement, I make mistakes and then I have a lot to learn from them. By setting a goal for each trading setup, for each day, week, I can tell if I did well and if that was a good day. Now I've had enough experience to expect days when I’ll know not to trade. I know to follow setup with my rules in order to have losing days as little as possible. So I know that not all Good Days have to be Winning Days, they just have to be days that work for me.
"Never set a goal if you’re not in full control of its attainment."*
"Working Harder at Trading Means Trading More Often."*
Nothing can be worse than over trading. This is the first key to good risk management. I was doing anything to trade and make money. This was the biggest mistake I ever made during my trading career so far. If I only knew, and I hope I can inform somebody out there who is starting their learning process from a risk management point of view, I would never have allowed trading more and harder. Of course I could have avoided this problem, my mistake, but my trading started with learning about the technical aspect rather than risk management. If only at that time I had listened to the "pros," I would have stayed on SIM a lot longer in the first place and probably would have never fallen into the hole I did. Today I follow risk management for each and every single trade, for each day and week to make sure I don’t spiral into hard-and-often trading that would only dig me a deeper hole than before.
"Success Means Making a Living from Trading."*
Ooh yeah, this is the statement that got me into trading. The worst statement I ever heard. It came to me very quickly that this is not the goal to focus on in the beginning, but my family was "watching me" and expected nothing else but this. Thinking about making a living from trading is a good thing to do after at least 3-5 years of being bitten by the market, especially if you don’t have any idea what you’re doing. This amount of time is just necessary to get it all right and you can start making money after that. And again, if I only knew that this statement is the worst ever made, I would have saved myself a lot of frustration.
"There is no path to expertise that doesn't first require time to develop mere competence."*
If you’re looking for a way to make the process of acquiring expertise smoother and faster, the best advice I can give is to start with a journal, then make a plan and rules, learn to set goals, practice good risk management, and follow it all religiously.
"By focusing on risk-adjusted returns, not just absolute profitability, we blend process and outcome goals."*
"A Good Day Is a Winning Day."*
I say: “A No Trade Day Is also a Good Day.” Not only profit days are good. There have been lots of great days in my trading career that were not green days. I’m happy and proud of myself at the end of the day if I go back and see that I followed my rules and plan. I’m very proud of myself when I see that I executed my trades based on my rules for the setup. The most important days are those when I follow my rules about risk management. And as weird as it may seem, equally important are the ones when I manage my risk poorly. Even though I always trade with a stop placement, I make mistakes and then I have a lot to learn from them. By setting a goal for each trading setup, for each day, week, I can tell if I did well and if that was a good day. Now I've had enough experience to expect days when I’ll know not to trade. I know to follow setup with my rules in order to have losing days as little as possible. So I know that not all Good Days have to be Winning Days, they just have to be days that work for me.
"Never set a goal if you’re not in full control of its attainment."*
"Working Harder at Trading Means Trading More Often."*
Nothing can be worse than over trading. This is the first key to good risk management. I was doing anything to trade and make money. This was the biggest mistake I ever made during my trading career so far. If I only knew, and I hope I can inform somebody out there who is starting their learning process from a risk management point of view, I would never have allowed trading more and harder. Of course I could have avoided this problem, my mistake, but my trading started with learning about the technical aspect rather than risk management. If only at that time I had listened to the "pros," I would have stayed on SIM a lot longer in the first place and probably would have never fallen into the hole I did. Today I follow risk management for each and every single trade, for each day and week to make sure I don’t spiral into hard-and-often trading that would only dig me a deeper hole than before.
"Success Means Making a Living from Trading."*
Ooh yeah, this is the statement that got me into trading. The worst statement I ever heard. It came to me very quickly that this is not the goal to focus on in the beginning, but my family was "watching me" and expected nothing else but this. Thinking about making a living from trading is a good thing to do after at least 3-5 years of being bitten by the market, especially if you don’t have any idea what you’re doing. This amount of time is just necessary to get it all right and you can start making money after that. And again, if I only knew that this statement is the worst ever made, I would have saved myself a lot of frustration.
"There is no path to expertise that doesn't first require time to develop mere competence."*
If you’re looking for a way to make the process of acquiring expertise smoother and faster, the best advice I can give is to start with a journal, then make a plan and rules, learn to set goals, practice good risk management, and follow it all religiously.
"By focusing on risk-adjusted returns, not just absolute profitability, we blend process and outcome goals."*
*LESSON 12 The Daily Trading Coach 101 Lessons for Becoming Your Own Trading Psychologist by Steenbarger, Brett N.
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